Notes to Accounts of Hind Commerce Ltd.

Mar 31, 2024

v Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the
present obligation at the Balance Sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value
of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount cannot be made.

Contingent assets are neither recognized nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

vi Revenue Recognition:

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future

economic benefits will flow to the Company and specific criteria have been met for each of the Companys activities as described below:

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract. Revenue is measured
at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are levied on
sales such as sales tax, value added tax, etc.

Export benefits available under the Export Import policy of the Government of India are accounted for in the year of export, to the extent measurable.

Dividend income on investments is recognised when the right to receive dividend is established.

Interest income is recognized on a time proportionate basis taking into account the amounts invested and the rate of interest. For all financial instruments measured at amortised cost, interest
income is recorded using the Effective interest rate method to the net carrying amount of the financial assets.

vii Expenditure:

Expenses are accounted on accrual basis.

viii Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes
the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability.

ix Income Taxes:

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax:

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from ''profit before tax'' as reported in the Statement of Profit and Loss because of
items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts expected to be recovered from or paid to the taxation authorities.

Deferred tax:

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit under Income tax Act, 1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary differences that arise from initial recognition of assets or liabilities in a
transaction that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized.

Deferred tax assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary
difference can be utilized. In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that affect neither the taxable profit nor the accounting profit,
deferred tax assets are not recognized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow the benefits of part or all of such deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled.

Presentation of current and deferred tax:

Current and deferred tax are recognized as income or an expense in the Statement of Profit and Loss, except when they relate to items that are recognized in Other Comprehensive Income, in
which case, the current and deferred tax income/expense are recognized in Other Comprehensive Income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to
realize the asset and settle the liability simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a legally enforceable right to set off
corresponding current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

x Foreign Currencies:

a) Initial Recognition

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange

differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss of the year.

b) Measurement of Foreign Currency Items at the Balance Sheet Date

Foreign currency monetary items of the Company are translated at the closing exchange rates. Non-monetary items that are measured at historical cost in a foreign currency, are translated using
the exchange rate at the date of the transaction.

Non-monetary items that are measured at fair value in a foreign currency, are translated using the exchange rates at the date when the fair value is measured.

Exchange differences arising out of these translations are recognized in the Statement of Profit and Loss.

xi Earnings Per Share:

Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equity shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.

xii Cash flows Statement

Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future
operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.

B. Nature and purpose of reserves

(a) Securities Premium Account: Securities premium account is used to record the premium on issue of shares. This account is utilised in
accordance with the provisions of the Act.

(b) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders.

(c) Equity Instruments through Other Comprehensive Income: This represents the cumulative gains and losses arising on the revaluation of
equity instruments measured at fair value through other comprehensive income, under an irrevocable option.

Note 21

FINANCIAL INSTRUMENTS

ACCOUNTING CLASSIFICATIONS AND FAIR VALUES

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
The categories used are as follows:

• Level 1: Quoted prices for identical instruments in an active market;

• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: Inputs which are not based on observable market data.

The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest
priority to unobservable inputs (Level 3 measurements).

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has
overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains
the sources of risk which the Company is exposed to and how the Company manages the risk and the related impact in the
financial statements.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive
instruments. Market risk is attributable to all market risk sensitive financial instruments, including investments and
deposits, foreign currency receivables, payables and borrowings.

The Company’s overall risk management focuses on the unpredictability of financial market and seeks to minimise
potential adverse effects on the financial performance of the Company.

Foreign Exchange Risk:

Foreign exchange risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency,
which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign
exchange rates relates to export of Cotton.

The Company regularly evaluates exchange rate exposure arising from foreign currency transactions. The Company follows
the established risk management policies and standard operating procedures.

Interest Rate Risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in prevailing market interest rates. The Company’s exposure to the risk due to changes in interest rates is Nil.

Equity Price Risk:

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic
rather than trading purposes. The Company does not actively trade in these investments.

Credit Risk:

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds,
derivative financial instruments, other balances with banks, loans and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The
Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of
transactions is reasonably
spread amongst the counterparties.

Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is
limited and there is no collateral held against these because the counterparties are banks and recognised financial
institutions with high credit ratings assigned by the international credit rating agencies.

Trade Receivables & Loans

The Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is
defined. Wherever the Company assesses the credit risk as high, the exposure is backed by either bank, guarantee/letter of
credit or security deposits. There are no Trade Receivables passed due date and impaired as at 31 March 2021. Financial
assests related to loans where there is siginifcant credit risk the provision has been made using the provision matrix.Loans
passed due date and impaired are Rs. 25,03,356/- and provison on same is Rs. 15,00,000/-.

The provision rates are based on days past due; and the calculation reflects the probability weighted outcome, the time
value of money and reasonable and supportable information that is available at the reporting date about past events,
current conditions and forecasts of future economic conditions.

Liquidity Risk:

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s finance
team is responsible for managing liquidity, funding as well as settlement management. In addition, processes and policies
related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through
rolling forecasts on the basis of expected cash flows.

Regulatory Risk:

The Company is exposed to risk attached to various statutes, laws and regulations including the Competition Act. The
Company is mitigating these risks through regular review of legal compliances carried out through internal scrutiny as well
as external compliance audits.

Capital Risk Management:

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company’s capital management policy is to
ensure that all times, it remains going concern and safeguard interest of its shareholders and stakeholders.

Commodity Price Risks:

The Company is exposed to the risk of price fluctuations of goods. The Company proactively manages these risks through
forward booking, inventory management and proactive vendor development practices. The Company’s reputation for quality,
product differentiation and service, with a robust marketing network mitigates the impact of price risk on finished goods.

Note-28 Previous year figures

Previous Year''s figures have been regrouped/reclassified, wherever necessary, to facilitate comparison with the current year''s classification/disclosures.

The accompanying notes are an integral part of these
financial statements

As per our report of even date For and on behalf of Board of Directors

For S I G M A C & CO
CHARTERED ACCOUNTANTS
(Firm Reg. No.116351W)

Sandeep Maheshwari Ujwal Lahoti Umesh Lahoti

PARTNER Director Director

ICAI M. No.049393 DIN:00360785 DIN:00361216

Place : Mumbai Pragati P. Sawant Rajesh Venket Bangera

Dated : 29th May,2024 Company Secretary Chief Financial Officer

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Mar 31, 2013

A. The number of shares and amount outstanding at the beginning and at the end of the reporting year is same.

b. The Company has one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to same right based on the number of shares held.

(1) Segment Reporting

The Company is engaged solely in trading activity during the year and all activities of the Company revolve around this activity. As such there are no reportable segment as defined by Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

(2) Previous year figures

Previous Year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosures.

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Mar 31, 2012

Not Available

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Mar 31, 2011

1. Deposit include Rs. 3.5 Lacs (Previous Year Rs. 3.5 Lacs) being interest free security deposit, for Office Premises, to a company in which some of the Directors are interested.

2. Sundry Debit/Credit balances are taken at book figures & are subject to confirmation.

3. The Company is engaged solely in investment activity during the year and all activities of the Company revolve around this activity. As such there are no reportable segment as defined by Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

4. Related Party Disclosures :

List of Related Parties with whom transaction have taken place & Relationship,

Name of the Related Parties Relationship Lahoti Overseas Ltd. Enterprises over which Key Management Personnel are able to exercise significant influence

The Company docs not have any outstanding dillutive potential equity shares.

5. Based on information so far available with the Company in respect of MSME(as defined in '' The Micro, Small & Medium Enterprises Development, Act 2006 )there are no delay in payment of dues to such enterprises during the year and there is no such dues payable at the year end.

6. Previous Year''s figure have been regrouped, rearranged,wherever necessary, so as to make them comparable with current year''s figure.

7. Other information required under Part 1 & Part II of Schedule VI to the Companies Act, 1956 is either NIL or NOT APPLICABLE.

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Mar 31, 2008

1) Contingent Liability:

Uncalled liability on partly paid Debentures Rs. 18900/- (P.Y.Rs. 18900/-).

3) Company had advanced loan of Rs. 969812 /- to a party which has delayed the repayment of principal and interest. The Company is taking appropriate steps for. recovery of the same. In the opinion of the Board of Directors, the amount is recoverable and good. However, during the year no interest has been charged on the said loan as it is considered doubtful.

3) Deposit include Rs. 3.5 Lacs (Previous Year Rs. 3.5 Lacs) being interest free security deposit, for Office Premises, to a company in which some of the Directors are interested.

4) Sundry Debit/Credit balances are taken at book figures & are subject to confirmation.

5) The Company is engaged solely in trading activity segment and all activities of the Company revolve around this business. As such there are no other reportable segment as defined by Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India.

6) Previous Years figure have been regrouped, rearranged,wherever necessary, so as to make them comparable with current years figure.